Americans Collectively Owe Almost $1 trillion in Credit Card Debt.

That looks like a good book, I will add it to my wish list. Yeah, becoming wealthy is simple, but takes a lot of self sacrifice.

It isn't about being smart or just having connections, though these things help. You know what though honestly? 80% of the American population wants to be rich, but only 20% will ever make it.

This isn't because there is some barrier physically blocking 80% from getting there. The problem is, most people just don't have the dedication, determination, discipline, and motivation to become wealthy.

Many people want to do things "the easy way." This is why con artists and late night infomercials make so much money. They lure people in with the idea of "easy money" and the average man or woman, who always wants things the easy way, falls for it every time.

Crazy Rob, right this second I know a bunch of people in my family who would not bother to read the book you linked to. They would rather watch movies, television, or play video games. They have no desire to become informed about the world they live. And these are the same people who are living paycheck to paycheck, with not money and lots of debt.

Anyone whose goals is to become rich so they can buy a whole bunch of fancy stuff will never make it. If you think you can take shortcuts on your path to wealth, again, you will never make it. There are no short cuts to success. period.

 

Debt is a necessary part of society. There are bad spenders in the US (like Canada), but most of the debt is legitimate debt that comes from living life. As long as you make debt a priority and pay it back, it's not really a big deal.

 

The reason why American collectively owe almost $1 trillion in credit card is because it is "easy" to borrow. Saving money, that takes discipline, motivation, and effort. It is far easier to just run to the bank, and get a credit card and start buying stuff.

But what appears to be easy at first becomes harder later on once you realize that you've got to pay all that money back, plus interest.

You know, I think debt will probably be the downfall of this nation.

 

Yeah, like I said there are bad spenders who abuse the banks thinking it'll never come back to them. Most people carry a little (or a lot of) debt at some time though. Again, not a big deal if you're mature enough to handle it.

 

I disagree strongly. I live a 100% debt free life style. I save more than 40% of the income I bring each year, and then I take a portion of that money I saved, and reinvest into my online business.

I'm frugal, and I don't have a whole lot of bills, which means most of the money I bring in each month goes in the bank, and stays there. I have absolutely no need to borrow from anyone else. Saving money has always been, and will always be superior to borrowing.

Saving money takes discipline, determination, and motivation. Borrowing money just requires you to have a good enough credit score.

I disagree with this, because when you're paying interest on a loan, you always pay back more, and you actually become less wealthier than you would be if you simply saved your money and didn't borrow.

Here is a scenario. Which guy is better off, the man who saves up for a $3,000 plasma tv, or the man who uses his credit card to pay for it, and then has to pay it back monthly at 14% interest? It is a no brainer, the guy who saved his money won hands down, because he used his own money.

 

There's more to life than money tesla.

 

but what's the point to be a billionaire if you don't spend it?

no exactly true. it depend on what you do with you money. If you let them sitting in your saving account, it is stupid to pay 14% interest.

 

Yeah, like plasma TV's!

 

Also, it is important to realize that the person who borrows money is the slave, and the person who loans it out is the master. The banks own everything. The biggest building in just about every major city is always a bank.

One of the best financial books I've ever read, the Millionaire Mind, talked about a guy who was taken to the top of a skyscraper by wealthy lender. When he showed the guy the skyline of the city, he pointed his hand and said:

You see all that? We own all of that. You people own nothing. You're just borrowing from us, but at the end of the day, all of this belongs to us.

That right there sums up why I never borrow. I won't even borrow for a house, I will save until I can afford to buy a house out right, and If I never have enough, I just never have enough.

The truth is that the American banking establishment owns this country and the government. When Bush needs to borrow money for war, he turns right to the Fed. In reality, Ben Bernanke is FAR more powerful than Bush, because he is the one who decides the interest rate, and allows money to be borrowed.

 

There's also more to life than needing to be a slave to debt.

I'd rather try to keep debt to a minimum and save until I can afford the things I need or want (in that order).

I can enjoy life much more without feeling the burden of living paycheck to paycheck or worrying that I'll get layed off and go bankrupt.

 

Haha. We all come out of the ground and go back into it. Only a fool would think he's my master.

 

It is not that you don't spend the money, you are wise with how you spend it. Let me give you an example. I'm a pretty practical guy. I don't see the need to pay $500 for an Iphone, $2,000 for a plasma television, and hundreds of dollars for clothes just to show off.

However, if I need to purchase a tool for my online business, or someone here at DP has information I need, and they won't me to pay for it, then I will, because to me that is worth something.

Many people spend lots of money on things that aren't truly valuable. Electronics lose their value over time, and clothes drop in price once you buy and wear them. I just don't see the need to spend a lot of money on that stuff.

But don't get me wrong, I have my luxuries. The way I see, if you save $15,000 in a single year, and you decide you want to take a trip to Costa Rica and live it up for a few days, then by all means do it, because you deserve it.

Hell, I'm thinking about taking a nice trip to Vegas real soon.

 

Good points!

However, usually renting is the alternative to buying (via a loan) a house. Real estate is a very good way to make money and you can usually a get much better place for the same amount of money by buying (and you get a tax credit too!).

 

This is the truth, they are not different than us in that sense, but you have to admit the guy had a point. And I think you should look beyond just the man who made that quote, because I feel that he was talking about the bank itself.

Even if Bank presidents come and go, growing old and dying, the institution still remains. When you really think deeply about it, Americans live in bondage.

I mean, if you owe a lot of money on a credit card, and you're struggling to pay it off, then you're basically a slave to the credit card company.

Here is a math question. If Americans owe roughly $910 billion in credit card debt, at an average rate of 14% interest, how much does the credit card companies make in interest over a period of 10 years? This is saying that everyone makes payments on time and no one defaults, which will all know isn't realistic.

 

Same here. There is no greater feeling than owing nothing to nobody. By being debt free and having a nice rainy day account brings about a lot of flexibility and pride. People need to start living within their means!

 

I really don't give a crap about what other people do with their money.

Plasma TV's, escorts, iPhones....whatever makes you happy I guess.

 

In the scenario I described, you have two guys who want a plasma television that costs $3,000. One man decides to save money for it and then buy it, and the other guy decides to do it the "easy way" and borrow money off his credit card.

Which man do you think came out on top in the end?

I agree with you on this. It is a free country, I mean, people should be able to do what they want.

But I assure you of one thing. The man or woman who is frugal and thrifty, and who makes wise investments will always beat those who spend money on things that don't matter. This is what truly separates the rich from the poor.

The poor always buy crap that is worth nothing. The rich, they tend to invest money in their business or their education. I think this is why they tend to have lots of wealth.

Amen to that. It feels damn good doesn't it? It feels good to me personally to know that I'm not a part of that $910 billion dollars that is owed to credit card companies.

It feels really good to have more money in the bank than you make per year. Hell, I get a kick out of buying stuff on sale and shopping online for bargains. There is nothing that can describe it.

This is true freedom, this is what it is all about. I even wrote a book about it this year, which I'm currently selling online. Here is my own personal formula for becoming financially successful:

1. Never borrow money.
2. Save a large percentage of your annual income preferably 30% to 60% or more.
3. Take a portion of that savings, and invest in either your business, or your education.

4. Once your income increases(due to getting a higher education, or having a successful business), you then continue to save more, and repeat the same process over again, until one day, you become financially independent. Hell, you may even become a millionaire.

5. Buy gold and silver on a regular basis so that your savings do not get eaten up by long term inflation. Gold and Silver are inflation proof.

There is my simple wealth building formula. Sounds simple, but requires motivation and discipline.

 

hey, can you hook me up with that (link or book). i am a totally N00bs on investment. I've around 20k in my saving account and i am worry cause USD keep on sinking...

 

For me, it's not about greed or being driven to make money, it's about not wanting to be at the mercy of "the Man". I want to be more self reliant and be my own boss.

As that Rich Dad/Poor Dad guy states, make your money work for you. He said there's 3 great ways to make money.

1. A religious figure, such as a televangilist, which most people don't have that "calling".
2. Invest in real estate (it's a diminishing resource and usually increases in value + everyone has to live somewhere)
3. Have a small business - you get the benefits of a rich person with the tax write offs, etc, while not necessarily being rich yourself (yet).

You could also combine it into a real estate investing business.

Until the day comes when we can chemically make gold or silver, like we can with diamonds.

 

that's a big figure.

India's GDP is just over $1 trillion ($1089 billion). .